Nancy Pelosi is best known for her political exploits. After all, Pelosi was Speaker of the House of Representatives for eight years and minority leader for another eight years.
She has been a fixture in American politics for more than a generation, has served in Congress since 1987 and was the first female speaker in American history.
However, Pelosi and her husband Paul have also had great success in the stock market and now have a net worth of approximately $250 million. Thanks to the STOCK Act, which requires members of Congress to report their stock transactions, the stocks the Pelosis own are known, and several of them have been big winners.
Let’s take a look at the two top stocks Pelosis own that look like smart buys this month.
1. Nvidia
Paul Pelosi opened a large long position in Nvidia (NASDAQ: NVDA) on November 22, 2023, spending between $1 million and $5 million and buying 50 deep-in-the-money call options, equal to 5,000 shares, on the popular artificial intelligence (AI) stock at a pre-split strike price of $120 with an expiration date of December 12, 2024.
Nvidia shares have more than doubled since then, so those options have paid off for the Pelosis, but it’s not too late to buy the high-flying chip stocks.
While Nvidia has soared in recent weeks, thanks in part to its 10-to-1 stock split that will take effect after hours on June 7, there are more reasons to own the stock than just the stock split.
First, despite competitive concerns, Nvidia remains head and shoulders above its competitors AMD And Intelboth of which recently released their own data center graphics processing units (GPUs) designed to compete with Nvidia.
However, Nvidia’s recent results and guidance indicate that the company continues to grow at a blistering rate while dominating the data center GPU market. Sales rose 262% year over year, and profits rose even faster than that. While revenue growth will slow year-over-year as comparisons become more difficult, the company expects sequential growth to continue and continues to innovate with its new Blackwell platform and a push into AI PC chips.
Nvidia is performing at the top of its game and profits are still rising. There may be competition, but it looks like Nvidia can easily avoid it.
2.Microsoft
The other Pelosi stock worth buying in June is Microsoft (NASDAQ: MSFT), which, like Nvidia, is a top AI stock. Paul Pelosi purchased between $500,000 and $1,000,000 worth of Microsoft stock on June 15, 2023 by exercising 50 call options with a strike price of $180, equal to 5,000 shares.
In the year since, Microsoft shares have continued to rise, and it remains a must-own stock in the AI ​​era.
The tech giant recognized the potential of generative AI early on, partnered with OpenAI in 2019 and has since invested around $13 billion in the startup. As a result, Microsoft has been able to leverage OpenAI’s technology for everything from the GitHub code repository to the Azure cloud infrastructure service, Microsoft Office Suite and the Bing search engine.
Microsoft also boasts a level of diversification that is essentially unparalleled within the “Magnificent Seven” stock group, as it benefits from several profit centers, including software such as Office, its cloud business anchored by Azure, its Windows operating systems, which are closely tied to PCs . sales and gaming through Xbox and now Activision Blizzard.
Besides Nvidia, which is building the infrastructure for generative AI, Microsoft is one of the few companies that has turned demand for AI capabilities into significant revenue. For example, 65% of the Fortune 500 now use the Azure OpenAI service, and almost 60% of the Fortune 500 now use Copilot, the generative AI-based assistant.
Microsoft already had one of the biggest economic moats in the business world before the generative AI boom, but it looks even stronger now. It’s no surprise that the Pelosis own Microsoft. The technology giant deserves a place in almost every portfolio.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Advanced Micro Devices, Microsoft, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2025 calls of $45 on Intel, long January 2026 calls of $395 on Microsoft, short August 2024 calls of $35 on Intel, and short calls in January 2026 from $405 on Microsoft. The Motley Fool has a disclosure policy.
2 Top Pelosi Stocks to Buy in June was originally published by The Motley Fool
